The Ministry of Defense promoted, this Thursday (11), the 39th meeting of the Mixed Committee on Defense Industry (CMID), in the folder’s headquarters. On the occasion, the Civil Police of the State of Espírito Santo (PCES) and the Information Technology and Communication Center of the State of Rio de Janeiro (Proderj) were approved as the first public institutions to have access to the benefit of the Special Bidding Term (TLE) for the acquisition of defense products. The initiative, which restricts bidding processes to companies from the Defense Industrial Base (BID), benefits not only the Armed Forces but also public sector agencies. The portfolio works to promote and strengthen the defense sector, which represents about 5% of GDP and generates 2.9 million jobs.
The Director of the Department of Defense Products (Deprod), Rear Admiral Vagner Belarmino de Oliveira, commented on the gains obtained with the use of the TLE. “By adopting the Special TLE as a procedural step, everyone wins: society, government, and industry. The expected increase in commercial relations tends to an expansion of the market with a consequent increase in the generation of jobs and income, valuable to society. The administrative rationality achieved with this rite benefits government institutions, especially the smaller ones, which would have difficulty managing a larger number of processes. And the industry grows with the economy of scale present in the context of its operational activities.
The two approved terms will be executed by the Ministry of Management and Innovation in Public Services, through the Purchasing Center. The sector has the expertise to open the price register minutes nationwide, so that other agencies can join the bidding, with gains in time, quality, and productivity. The IDB companies that win the bidding process have the possibility to leverage the sale of their products in the Brazilian market.
During the 39th edition of the CMID, chaired by the Chief of Staff of the Armed Forces (EMCFA), Fleet Admiral Renato Rodrigues de Aguiar Freire, 78 proposals for Strategic Defense Products (PED), one for Defense Products (PRODE), four for Defense Companies (ED) and another 13 for Strategic Defense Companies (EED) were also evaluated. Currently, the defense industry has 137 companies accredited as EED and 33 as ED. Regarding products, 1160 are classified as PED and 116 as PRODE.
Special Bidding Term (TLE)
The TLE was created by Presidential Decree No. 7,970 of March 28, 2013 that establishes special rules for the procurement, contracting and development of defense products and systems. As of the signing of Decree GM/MD nº 5,904, of December 6, 2022 as well as the Armed Forces, the organs and entities of direct or indirect public administration, in the Three Branches, in the federal, state, district and municipal spheres, became entitled to the benefit.
First Defense Company in the Financial Sector
During the meeting, InsurBids Tecnologias de Seguros, an InsurTech specialized in the Defense and Security Sector in Brazil, had its accreditation request approved, becoming the first Defense Company in the Financial Sector. The InsurTech Defense Project, a result of the Technical Cooperation Agreement between the Ministry of Defense and the Federation of Industries of the State of São Paulo (FIESP), was conceived as a solution to meet the specific needs of the Defense and Security Industrial Base in terms of credit insurance, guarantees and related instruments, which are fundamental for the mitigation of business risks and for the access to government purchases and to the growing and promising international market.
Also present were the MD Secretary-General, Luiz Henrique Pochyly da Costa; the Chief of Logistics and Mobilization, Admiral André Luiz Silva Lima de Santana Mendes; and the Secretary of Defense Products, Rui Chagas Mesquita; among other representatives of the portfolio and other ministries.